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- Asset Impairment (new) — The company recorded a $9 million asset impairment charge in Q2 2026 related to the announced closure of its Turkey manufacturing operations.
Autoliv reports Q2 2026 results, announces Turkey plant closure affecting 2,200 employees
Filed July 17, 2026 · Period ending July 17, 2026 · ~1 min read
Key Changes
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high
Closing Turkey manufacturing operations by H1 2028, affecting ~2,200 employees; recorded $90M of $142M total restructuring charge in Q2, expects $40M annual pre-tax savings starting 2027
Exhibit 99.1 view on EDGAR → -
high
Q2 net sales $2.8B (up 3.3%, 1.0% organic growth); adjusted operating margin 9.6%; diluted EPS $1.35 (down 38% on restructuring charges); reaffirmed FY2026 guidance of ~0% organic growth, 10.5-11% adjusted operating margin
Exhibit 99.1 view on EDGAR → -
high
Operating cash flow $434M (best Q2 on record, up from $277M prior year); free operating cash flow more than doubled to $340M; leverage ratio improved to 1.2x
Exhibit 99.1 view on EDGAR → -
medium
Sales to Chinese OEMs grew >40% year-over-year; Chinese OEMs now represent 55% of China sales (up from 40% a year ago)
Exhibit 99.1 view on EDGAR → -
medium
Recorded $9M asset impairment charge related to Turkey restructuring activities
Exhibit 99.1 view on EDGAR →
Summary
Autoliv reported Q2 2026 results alongside a significant restructuring announcement: the company is closing its Turkey manufacturing operations, which produce steering wheels, airbags, and seatbelts. The closure affects approximately 2,200 employees and will shift production to other EMEA facilities by the first half of 2028.
Autoliv recorded $90 million of an expected $142 million total restructuring charge in Q2, with cash outflow of approximately $129 million. The company expects the closure to generate $40 million in annual pre-tax savings starting in 2027, reaching full run-rate in 2028. The $9 million asset impairment charge related to this restructuring is a direct consequence of the capacity realignment.
Despite the restructuring headwinds, Autoliv delivered solid underlying performance. Q2 net sales of $2.8 billion grew 3.3% year-over-year with 1.0% organic growth, outperforming the 0.3% decline in global light vehicle production. Adjusted operating margin reached 9.6%, while reported diluted EPS of $1.35 fell 38% primarily due to the Turkey restructuring charges. The company achieved record Q2 operating cash flow of $434 million and more than doubled free operating cash flow to $340 million, supporting $200 million in Q2 share repurchases (1.65 million shares). Autoliv reaffirmed full-year 2026 guidance of around 0% organic sales growth and 10.5-11% adjusted operating margin. The company's strong performance with Chinese domestic automakers—sales to Chinese OEMs grew over 40% and now represent 55% of China sales—demonstrates successful strategic positioning as the market shifts toward domestic manufacturers.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Autoliv announced Q2 2026 financial results via press release, using various non-GAAP measures alongside GAAP metrics.
Added in current filing · verify on EDGAR →
On July 17, 2026, Autoliv, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter of 2026.
Autoliv disclosed its second quarter 2026 financial results through a press release. The 8-K itself does not contain the actual financial figures—those are in the attached Exhibit 99.1 press release, which is incorporated by reference.
Added in current filing · verify on EDGAR →
This press release contains certain references to financial measures identified as “organic sales,” “adjusted operating income,” “adjusted operating margin,” “adjusted other non-operating items, net,” “trade working capital,” “adjusted earnings per share - diluted,” “net debt,” “adjusted EBITDA,” “free operating cash flow,” “cash conversion,” “leverage ratio,” and “adjusted return on capital employed,” “adjusted return on total equity,” all of which are adjustments from comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP).
The earnings release uses multiple non-GAAP financial measures alongside GAAP results. Management states these provide useful supplemental information for understanding core business results, though they should not substitute for GAAP measures. The specific adjustments and reconciliations would be detailed in the press release exhibit.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
$2,803 million net sales, increase of 3.3% 1.0% organic sales growth* 6.8% operating margin, 9.6% adj. operating margin* $1.35 diluted EPS, 38% decrease
Autoliv reported Q2 2026 net sales of $2,803 million, up 3.3% year-over-year, with 1.0% organic growth outperforming the 0.3% decline in global light vehicle production. Operating margin was 6.8% (9.6% adjusted), while diluted EPS fell 38% to $1.35, primarily due to restructuring charges in Türkiye. The company maintained strong underlying profitability despite headwinds from foreign exchange and raw material costs.
Added in current filing · view on EDGAR →
On May 8, 2026, Autoliv announced an update to its strategy to align production capacity with future EMEA market requirements. As part of this strategy, Autoliv will gradually discontinue its manufacturing operations in Türkiye, which include the production of steering wheels, airbags, and seatbelts, to continue optimizing its manufacturing footprint and ensure long-term competitiveness and operational sustainability. This discontinuation is expected to affect approximately 2,200 employees. Production in Türkiye will be moved to Autoliv's other existing facilities in the EMEA region. The complete closure is anticipated in the first half of 2028. The Company expects to record restructuring charges of approximately $142 million in total, of which $90 million was recognized in Q2 2026. Cash outflow is expected to be approximately $129 million, with a limited impact on the 2026 cash flow. The Company expects to achieve estimated annual pre-tax savings of $40 million, beginning in 2027, reaching the full run-rate benefit in 2028.
Autoliv is closing its Türkiye manufacturing operations, affecting approximately 2,200 employees, with production shifting to other EMEA facilities by first half 2028. The closure is expected to generate $40 million in annual pre-tax savings starting in 2027, reaching full run-rate in 2028.
Added in current filing · view on EDGAR →
Full year 2026 Guidance | Organic sales growth | Around 0% | Adjusted operating margin1) | Around 10.5-11% | Operating cash flow2) | Around $1.2 billion
Autoliv reiterated its full year 2026 guidance, expecting around 0% organic sales growth, adjusted operating margin of around 10.5-11%, and operating cash flow of around $1.2 billion. The company expects Q3 adjusted operating margin to be around the first half 2026 level (9.3%), with significant improvement in Q4 driven by customer compensations and mitigation initiatives.
Added in current filing · view on EDGAR →
Cash flow was the best for a second quarter so far with operating cash flow improving from $277 million to $434 million, mainly driven by strong underlying profitability and a normalization of working capital. Free operating cash flow* more than doubled to $340 million. The leverage ratio* improved to 1.2x. In the quarter, a dividend of $0.87 per share was paid and 1.65 million shares were repurchased and retired.
Autoliv delivered record Q2 operating cash flow of $434 million (up from $277 million prior year), with free operating cash flow more than doubling to $340 million. The leverage ratio improved to 1.2x. The company paid a $0.87 per share dividend and repurchased 1.65 million shares for $200 million, supporting its ambition for $300-500 million in total 2026 share repurchases.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 23, 2026 · How we verify